The experts analyzed the market situation and talked about possible changes in the coming week. It is important to note that the opinions of experts may differ and not always coincide with the position of the editorial board. The published information is provided solely for informational purposes, and RBC-Crypto does not provide investment advice, since cryptocurrency is a volatile asset that can lead to financial losses.
At the time of Sunday, December 10, the price of bitcoin (BTC) is $43,800. At the end of the previous week, the price increased by 11.3%. On December 9, bitcoin reached its new high of 2023, rising to $44,700 paired with Tether USD (USDT) on the Binance exchange. Experts conducted a market analysis and provided an assessment of the prospects for the movement of the bitcoin exchange rate in the next seven days.
BTC/USD
Current price: $43,835 (-0.03%)
Date and time: December 10, 11:46:13
BitRiver financial analyst Vladislav Antonov stressed that last week bitcoin was actively growing and reached a new annual high of $44,700. At the moment, the weekly yield is 9.58%.
An analysis of bitcoin's price dynamics showed the following:
On Monday, December 4, the bitcoin price reached $42,154, breaking the resistance level of $38,500.
On Tuesday, the price continued to rise, reaching $44,073, influenced by positive statements from the head of the Coinbase exchange regarding the prospects for bitcoin.
On Wednesday, there was a slight correction to $43.335 due to the strengthening of the dollar after reaching the price of $44.488.
On Thursday, the correction intensified to $42,821, partly due to the redistribution of funds from bitcoin to Ethereum (ETH).
However, on Friday, the price recovered and reached $44,400.
Interestingly, the price of bitcoin has been rising with the simultaneous strengthening of the US dollar and the growth of stock indexes. The dollar index reached 104.05 points, thanks to positive statistics and an increase in government bond yields. This indicates that markets are postponing expectations for monetary easing by the Federal Reserve System (FRS) until March 2024.
The growth of bitcoin is due to high average monthly wages, the unemployment rate and the creation of new jobs in the US economy. These data reinforced the "hawkish" sentiment in the Fed regarding a possible increase in interest rates.
November data on new jobs in the non-agricultural sector of the United States exceeded expectations, amounting to 199,000, compared with the expected 180,000. The unemployment rate unexpectedly dropped to 3.7%, instead of the expected 3.9%. There was also a significant increase in hourly wages. On Friday, data from the University of Michigan also showed an improvement in consumer sentiment after four months of decline.
Next week, Tuesday will bring the general and basic consumer price indices (CPI) for November, which will have an impact on the Fed's decisions. Strong macroeconomic statistics have already raised US government bond rates, but the market does not yet expect the Fed to raise the base rate in December, although policy easing may slow down in 2024. It will be important to monitor the forecasts of Fed members and their actions in order to contain inflation.
Major market participants such as Fidelity and BlackRock are actively cooperating with the U.S. Securities and Exchange Commission (SEC) to launch exchange-traded funds (ETFs) for bitcoin. They present detailed offers and updates, showcasing their ETF products, including creation and repayment models. These efforts indicate the desire of institutional players to eliminate regulatory obstacles and enter the cryptocurrency market. This interest from traditional financial institutions reflects the growing importance of the cryptocurrency space.
Traders and investors are betting on growth based on several assumptions. Firstly, historically November and December have been successful months for bitcoin in terms of profitability. Secondly, the expectation of approval of an ETF for bitcoin by the SEC is increasing. And thirdly, the countdown continues to the next reduction in the reward for bitcoin mining in 2024.
